Kempen European High Dividend Fund N.V. N · EURONEXT:KEHDF
Kempen European High Dividend Fund N.V. N — Van Lanschot Kempen — Shareholder Meeting (May 2024)
56 slides from Kempen European High Dividend Fund N.V. N's shareholder meeting presentation, May 23, 2024
Slide 1: Annual General Meeting - Welcome
ee s-Hertogenbosch, 23 May 2024 Annual General Meeting Welcome
Slide 2: 1. Opening
1. Opening 2
Slide 3: 2a. Report by the Supervisory Board
2a. Report by the Supervisory Board Item for discussion 3
Slide 4: 2b. Report of the Management Board for 2023
2b. Report of the Management Board for 2023 Item for discussion 4
Slide 5: The year in review
The year in review Our clients Our employees Society Our shareholders • Continuing growth of • Focus on the • Focus on energy and • Dividend proposal of clients and net inflows development and food transitions €2.00 per share • Renewed interest in throughflow of • Continued annual • Continued fixed
Slide 6: 2023: Key financial highlights
2023: Key financial highlights Profitable growth and strong capital position Net result €125.2m Commission AuM Strong capital position (2022: €84.3m) income €427.2m €127.6bn CET 1 ratio 19.6% (2022: €407.8m) (2022: €107.8bn) (2022: 20.6%) Underlying net result Interest income AuM net inflow RoCET 1
Slide 7: Achieving sustainable and profitable growth
Achieving sustainable and profitable growth Organic growth • Strong net AuM inflow (€5.3bn) AuM development (€ bn) Bolt-on Bolt-on acquisitions acquisitions • Complete integration of Mercier •Vanderlinden Completed integration of Mercier Vanderlinden +18% • AcquisitionofofRobeco Robeco’s online inve
Slide 8: Working towards our medium-term financial targets
Working towards our medium-term financial targets Cost/income CET 1 ratio RoCET 1 Dividend ratio pay-out ratio* 71.6% 19.6% 14.2% 68.6% Target: Target: Target: Target: 70 % 17.5% including 12% 50 – 70 % 2.5% M&A add-on * Proposed dividend payment / underlying net result attributable to shareholders
Slide 9: Investing in our technology
Investing in our technology We are continuously investing in technology and process optimisation to enable scalability of our business model Our digital agenda is a key part of our strategy GenAI offers a great additional opportunity and is already improving productivity • 1st company live with Micr
Slide 10: BCG benchmark study on GenAI maturity
BCG benchmark study: “Van Lanschot Kempen is trending above peers’ average when it comes to GenAI maturity” A strong outside-in perspective confirms we are comparable to or are in the forefront of AI and GenAI implementation in our industry Multiple use cases were delivered at full scale in 2023 and
Slide 11: People are our most important asset
People are our most important asset, we foster expertise, an entrepreneurial mindset and our personal approach Investing in talent development • Van Lanschot Kempen Academy • Young Private Banking program Nurturing a high-performance culture • 90% employee engagement score • Stimulate and promote in
Slide 12: Progress towards our sustainability goals
Progress towards our sustainability goals Lower carbon emissions Discretionary (AuM) 88% of funds on track for reduction of 7% average annual emission intensity in line with Paris Agreement Target: 80% of funds comply with 7% average annual emission intensity reduction Mortgage portfolio -6.9% total
Slide 13: 2023 full-year results
2023 full-year results 13
Slide 14: 2023: Key messages
2023: Key messages Net result of €125.2m (2022: €84.3m): • Commission income +5% • Interest income +21% • Operating expenses +8% Net AuM inflow: €5.3bn • Private Clients net inflow: €2.3bn • Wholesale & Institutional Clients net inflow: €3.1bn Segment operating profit before tax: • Private Clients:
Slide 15: Net result amounts to €125.2m
Net result amounts to €125.2m Key drivers of net result (€ m) 10,0 -36,7 33,8 28,5 -5,4 19,4 -8,7 137,5 125,2 125,2 103,7 110,7 102,0 102,0 84,3 84,3 2022 Commission Interest Other income Operating Impairments Expenses Other** 2023 income income* expenses related to accounting treatment Mercier Vand
Slide 16: Private Clients: High net inflows
Private Clients: High net inflows AuM (€ bn) 5,0 4,7 2,3 52,4 47,5 40,5 40,5 42,8 31/12/2022 Net AuM inflows Market Acquisition 31/12/2023 performance 16
Slide 17: Private Clients: Strong net AuM inflow in Belgium
Private Clients: Strong net AuM inflow in Belgium of €0.8bn • After a successful integration we continued as Mercier Van Lanschot from 1 January 2024 • Private Clients Belgium will be reported as a separate segment from 2024 • Acquisition of Belgian investment adviser Accuro completed in April 2024
Slide 18: Private Clients: Positioning Evi van Lanschot for further growth
Private Clients: Positioning Evi van Lanschot for further growth • Good progress on integration of Robeco’s online investment platform • Acquisition created a leading online investment platform for affluent clients, with AuM of €6.4bn • Combined activities expected to break even by 2025 – and then t
Slide 19: Wholesale & Institutional Clients: €3.1bn net inflow
Wholesale & Institutional Clients: €3.1bn net inflow AuM (€ bn) 4,7 0,5 2,8 -0.2 75,1 67,3 67,2 67,2 69,9 70,4 31-12-2022 Net Investment Net Fiduciary Net Alternative Market 31-12-2023 Strategies Management Investment performance inflows inflows Solutions inflows 19
Slide 20: Stable margins at both Private Clients and Wholesale & Institutional
Stable margins at both Private Clients and Wholesale & Institutional Clients Annualised recurring fees* (€ m) 379,8 414,7 359,5 329,6 339,8 306,9 HY2021 YE2021 HY2022 YE2022 HY2023 YE2023 • Stable AuM margins: Private Clients: 63 bps (2022: 63 bps); Wholesale & Institutional Clients: 11 bps (2022: 1
Slide 21: Investment Banking Clients: Challenging markets
Investment Banking Clients: Challenging markets due to increasing interest rates Commission income (€ m) 55,3 56,0 36,5 2021 2022 2023 21
Slide 22: Interest margins improved in 2023
Interest margins improved in 2023 Interest income (€ m) Interest margin (12-month moving average, %) 1,24% 1,18% 0,92% 107,9 0,88% 93,0 88,6 76,1 77,5 69,7 H1 2022 H2 2022 H1 2023 H2 2023 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023* H2 2023* Interest margin* * Including MTN interest expenses 22
Slide 23: Operating expenses: Focus on scalable growth
Operating expenses: Focus on scalable growth Operating expenses (€ m) Internal FTEs 17,7 5 19,0 55 457,1 474,8 1.844 1.844 1.899 1.904 438,2 438,2 1.780 2022 Staff costs Other 2023 2022 H1 2023 Robeco's Other H2 2023 online investment platform 23
Slide 24: Loan portfolio
Loan portfolio €m Loan Loan % change Impaired Provision Impaired Coverage portfolio portfolio loans ratio ratio 31-12-2023 31-12-2022 Mortgages 6,368 6,341 0% 27 2 0.4% 8% Other loans 2,182 2,371 -8% 98 25 4.5% 26% Loan portfolio 8,550 8,712 -2% 125 28 1.5% 22% Mortgages distributed by third parties
Slide 25: Strong CET 1 ratio
Strong CET 1 ratio Dividend proposal of €2.00 per share (total €85.0m) Common Equity Tier 1 ratio (%) 0,8 0,8 -0,3 -1,9 -0,5 -0,2 20,6 18,7 18,7 19,5 19,8 19,4 19,6 19,3 19,3 ~18,5 31-12-2022 Capital return Shares issued Retained Operational Other 31-12-2023 Q1 2024 31-03-2024 31-03-2024 regarding p
Slide 26: Solid capital position
Solid capital position Continued commitment to return excess capital • Our intention remains to return excess capital above 17.5% CET 1 ratio target to our shareholders going forward Total shareholder return (€ m) Total capital return €146m 85 85 74 61 Capital return Dividend 2022 Capital return Pro
Slide 27: Committed to our financial targets
Committed to our financial targets Common Equity Tier 1 ratio Dividend pay-out ratio* 15% + 2.5% 50%-70% medium-term medium-term 23,8% 24,3% 23,7% 20,6% 19,6% 65% 67% 69% 57% 53% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Cost/income ratio Return on Common Equity Tier 1* 70% 12% medium-term m
Slide 28: Q1 2024: strong start of the year
DONE Q1 2024: strong start of the year • Solid quarterly result with a net result of €32.7 million (Q1 2023 €19.9 million); increase of commission income with 23% • Strong net AuM inflows of €2.3 billion, with €0.9 billion at Private Clients Netherlands, € 0.4 billion at Private Clients Belgium and
Slide 29: 2c. Compliance with the 2022 Corporate Governance Code
2c. Compliance with the 2022 Corporate Governance Code Item for discussion 29
Slide 30: 3. 2023 Remuneration Report
3. 2023 Remuneration Report Item for an advisory vote 30
Slide 31: 4a. Adoption of the 2023 Financial Statements
4a. Adoption of the 2023 Financial Statements Voting item 31
Slide 32: 4b. Adoption of a cash dividend of €2.00 per share
4b. Adoption of a cash dividend of €2.00 per Class A ordinary share Voting item 32
Slide 33: 5a. Discharge of the Management Board
5a. Discharge of the members of the Management Board from liability for their management in the 2023 financial year Voting item 33
Slide 34: 5b. Discharge of the Supervisory Board
5b. Discharge of the members of the Supervisory Board from liability for their supervision of the management conducted in the 2023 financial year Voting item 34
Slide 35: 6a. Adoption of remuneration policy for the Management Board
6a. Adoption of remuneration policy for the Management Board Voting item 35
Slide 36: Management Board remuneration: current structure to remain in place
DONE Management Board remuneration: current structure to remain in place Fixed remuneration • Since 2015, our Management Board receives fixed only remuneration only Significant proportion • The fixed remuneration includes a significant in shares proportion in shares, with a five-year lock-up period
Slide 37: We do propose a number of changes to the existing policy
DONE We do propose a number of changes to the existing policy: • Updating the reference group for compensation benchmarking, maintaining a strong focus on our main markets while addressing Listened to feedback stakeholder feedback on the size of some of the peer companies on reference group • No adj
Slide 38: Adoption of Management Board remuneration policy
Adoption of Management Board remuneration policy Voting item • When asked to advise on the Management Board’s remuneration policy, the Works Council issued a positive opinion • The proposed remuneration policy for the Management Board and the formal opinion of the Works Council can be found on www.v
Slide 39: 6b. Adoption of remuneration policy for the Supervisory Board
6b. Adoption of remuneration policy for the Supervisory Board Voting item 39
Slide 40: Proposed changes to Supervisory Board remuneration policy
We propose a number of changes to the Supervisory Board remuneration policy: • We conducted a review of our remuneration policy for the Supervisory Board to ensure it is fit for purpose for the coming four years • The outcome of the review is that we propose a number of changes to the existing polic
Slide 41: Adoption of Supervisory Board remuneration policy
Adoption of Supervisory Board remuneration policy Voting item • When asked to advise on the Supervisory Board’s remuneration policy, the Works Council issued a positive opinion • The proposed remuneration policy for the Supervisory Board and the formal opinion of the Works Council can be found on ww
Slide 42: 7a. Intended appointment of Damla Hendriks
7a. Notice of the intended appointment of Damla Hendriks as a member of the Management Board Item for discussion 42
Slide 43: Introduction Damla Hendriks
Introduction Damla Hendriks
Slide 44: 8a. Notice of vacancy and profile
8a. Notice of vacancy and profile; opportunity to make a recommendation Voting item if a recommendation is made 44
Slide 45: 8b. Reappointment of Karin Bergstein
8b. Reappointment of Karin Bergstein as a member of the Supervisory Board Voting item 45
Slide 46: 8c. Announcement of vacancy arising in 2025
8c. Announcement of the vacancy that will arise after the Annual General Meeting in 2025 Item for discussion 46
Slide 47: 9a. Acknowledgment of Mercier Vanderlinden annual report
9a. Acknowledgment of the annual report for the 2023 financial year drawn up by the former Board of Directors of Mercier Vanderlinden Asset Management NV Item for discussion 47
Slide 48: 9b. Acknowledgment of PricewaterhouseCoopers report
9b. Acknowledgment of the report for the 2023 financial year drawn up by PricewaterhouseCoopers, the former external auditor of Mercier Vanderlinden Asset Management Item for discussion 48
Slide 49: 10a. Approval of Mercier Vanderlinden Financial Statements
10a. Approval of Mercier Vanderlinden Asset Management NV’s Financial Statements for the 2023 financial year Voting item 49
Slide 50: 10b. Discharge of former Board of Directors of Mercier Vanderlinden
10b. Discharge of the members of the former Board of Directors of Mercier Vanderlinden Asset Management NV from liability for their management in the 2023 financial year Voting item 50
Slide 51: 10c. Discharge of PricewaterhouseCoopers
10c. Discharge of PricewaterhouseCoopers, the former external auditor of Mercier Vanderlinden Asset Management NV, for the mandate conducted in the 2023 financial year Voting item 51
Slide 52: 11. Authorisation to purchase own shares
11. Authorisation to purchase shares in own capital or depositary receipts for those shares Voting item 52
Slide 53: 12a. Designation of Management Board to issue shares
12a. Designation of the Management Board as the competent body to issue ordinary shares Voting item 53
Slide 54: 12b. Designation to limit or exclude pre-emptive right
12b. Designation of the Management Board as the competent body to limit or exclude the pre-emptive right when ordinary shares are issued Voting item 54
Slide 55: 13. Any other business and closure of meeting
13. Any other business and closure of meeting 55
Slide 56: Thank you
ee s-Hertogenbosch, 23 May 2024 Annual General Meeting Thank you